Tanzania cuts fuel levy to mitigate impact of Russia-Ukraine war

Dar es Salaam. While the war between Russia and Ukraine is projected to raise fuel prices, the government of Tanzania has scrapped Sh100 to each litre of petroleum products to bring relief for local motorists.

These changes according to the Ministry of Energy, will start effectively from Wednesday March 2, 2022, and will be implemented for the next three months.

The statement released by the ministry on behalf of the minister January Makamba, stated that the government would continue to monitor the movements at the world market while adjusting local prices to affordable levels.

“Though this decision would reduce government collections by Sh30 billion monthly, the state saw it was significant to protect its local consumers of the petroleum products from the fluctuations in the global markets,” the statement reads in part.

The government through the Energy Ministry has played a great role in stabilizing the prices.

On 5th October 2021, the Government reduced fees and charges of Government Institutions imposed on petroleum products by Sh29.38 per litre in petrol prices, Sh30.05 a litre on diesel prices and Sh26.99 a litre on kerosene prices.

In December, the Government also suspended collection of the petroleum fees of Sh100 a litre on petrol and diesel.